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DB 29: Apportionment when land acquired with other property
or “How to calculate land cost when bought with other property”
You could also call this:

“Tax deductions for costs related to non-industrial minerals”

When you have a cost related to a mineral, you might be able to get a tax deduction for it. This applies if:

You treat the cost as a mineral cost in your accounting and financial reports.

The mineral is not a listed industrial mineral.

No other part of the tax law lets you deduct this cost.

If you sell the mineral, it would count as income under section CB 29.

If all these things are true, you can deduct the cost from your taxes.

If the mineral is part of your trading stock, you can deduct the cost in the tax year when it first becomes part of your stock.

If it’s not trading stock, section EA 2 tells you when you can deduct the cost.

This rule adds to the general permission for deductions and overrides the capital limitation. Other general limitations still apply.

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Next up: DB 31: Bad debts

or “When and how you can claim deductions for unpaid debts”
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Part D Deductions
Specific rules for expenditure types

DB 30Cost of certain minerals

  1. This section applies when—

  2. an amount of cost of a mineral is treated by a person under generally accepted accounting practice as a cost of the mineral for the person and reported accordingly for financial reporting purposes; and
    1. the mineral is not a listed industrial mineral; and
      1. no other provision of this Act allows the person a deduction for the amount; and
        1. an amount derived by the person from disposing of the mineral would be income of the person under section CB 29 (Disposal of minerals).

          1. The person is allowed a deduction for the amount.

          2. If the amount is a cost of trading stock, the deduction is allocated to the income year in which the mineral first becomes trading stock of the person.

          3. If the amount is not a cost of trading stock, the deduction is allocated by section EA 2 (Other revenue account property).

          4. This section supplements the general permission and overrides the capital limitation. The other general limitations still apply.

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          Notes
          • Section DB 30 heading: replaced, on , by section 33(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
          • Section DB 30(1)(b): amended, on , by section 33(2) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).